America’s car-mart, inc. enters into new loan and security agreement

America’s car-mart, inc. announced it has entered into a third amended and restated loan and security agreement with a group of lenders effective september 30, 2019. the agreement replaces the company’s second amended and restated loan and security agreement dated december 12, 2016, as most recently amended on december 3, 2018 (“existing loan agreement”), the terms of which have been previously disclosed by the company. under the agreement, bmo harris bank, n.a. replaces bank of america, n.a. as agent, lead arranger and book manager. wells fargo bank, n.a. also joins the group of lenders. the lending group includes bmo harris bank, n.a. ($71 million commitment), wells fargo bank, n.a. ($30 million commitment), bokf, na d/b/a bank of arkansas ($50 million commitment, up from $44 million), first tennessee bank, n.a. ($40 million commitment, up from $30 million), arvest bank ($30 million commitment, up from $25 million), and commerce bank ($20 million commitment, unchanged). the agreement extends the term of the company’s revolving credit facilities to september 30, 2022 and increases the total permitted borrowings from $215 million to $241 million. the agreement also increases the accordion feature from $50 million to $100 million. in addition, the amount of company stock repurchases after the date of the agreement that may be excluded from fixed charges for covenant calculation purposes was reset at up to $50 million, subject to the same conditions as in the existing loan agreement. there were no prepayment penalties in connection with the payment of the balance owed under the existing loan agreement.
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